AirXpanders Announces New CEO

June 14, 2018 08:00 AM Eastern Daylight Time

SAN JOSE, Calif.--(BUSINESS WIRE)--AirXpanders, Inc. (ASX: AXP), a medical device company focused on
the design, manufacture, sale and distribution of the AeroForm®
Tissue Expander System, announced that it has appointed a new President
and CEO, Mr. Frank Grillo. Mr. Grillo commenced employment on June 12,
2018 in the U.S. The specific terms of Mr. Grillo’s employment have been
released separately. Mr. Grillo will also be appointed to the Board of
Directors.

Mr. Grillo joins AirXpanders with a distinguished career in the U.S.
medical device industry. He previously served for ten years in multiple
roles with Boston Scientific Corporation, including Vice President,
Marketing for its Women’s Health, Urology/Gynecology Division. Mr.
Grillo was then recruited to Kyphon, where he led the marketing
organization for its U.S.$400 million U.S.-based business as Vice
President, Marketing and Business Development. He was a key member of
the team involved in the sale of Kyphon to Medtronic for U.S.$4.2
billion in 2007. Mr. Grillo then joined Intuitive Surgical, Inc. where
he was a senior executive responsible for the marketing and business
development function for the multi-billion-dollar surgical systems
company. As Vice President, Marketing and New Business Development, he
directed the company’s marketing strategy and implementation of
marketing programs; oversaw all product launches worldwide; and
organized and managed initiatives to drive both procedural adoption and
sales in numerous surgical specialties while providing oversight for
acquisition, licensing and development activities. Most recently, Mr.
Grillo was at MRI Interventions, where he served as President and CEO.

Mr. Grillo holds a Bachelor of Science in Chemical Engineering from
Tufts University and a Master of Business Administration in Marketing,
Finance and Operations from the J.L. Kellogg Graduate School of
Management at Northwestern University.

Mr. Barry Cheskin, Co-Founder and Chairman of the Board said, “We are
delighted to have attracted and hired such a high-caliber CEO. Frank’s
experience and track record in all aspects of the medical device
business, including marketing, business development, sales growth and
operational efficiency will serve our company well.”

“I am excited to join AirXpanders, and to continue driving the adoption
of the AeroForm® tissue expander,” said Mr. Grillo. “AeroForm
is an innovative product, uniquely suited to transform post- mastectomy
tissue expansion. The product is highly innovative, the market is
significant, and surgeons are very interested in the ability to
streamline this important step in recovery for their patients. I am
excited to take on the leadership of the company and pursue the great
opportunity in front of us.”

Mr. Cheskin added, “The Company has made excellent progress over the
last few months in reducing costs and improving the efficiency of the
sales process. I would like to personally thank Scott Murcray, our
interim CEO, for his outstanding leadership during this period.”

Mr. Grillo is expected to lead AirXpanders’ 4C investor call in July
where he will provide a business update.

About AirXpanders

Founded in 2005, AirXpanders, Inc. (www.airxpanders.com)
designs, manufactures and markets innovative medical devices to improve
breast reconstruction. The Company’s AeroForm Tissue Expander System, is
used in patients undergoing two-stage breast reconstruction following
mastectomy. Headquartered in San Jose, California, AirXpanders’ vision
is to be the global leader in reconstructive surgery products and to
become the standard of care in two-stage breast reconstruction.
AirXpanders is a publicly listed Company on the Australian Securities
Exchange under the symbol “AXP.” AeroForm was granted U.S. FDA de
novo marketing authorization in 2016, subsequent U.S. market
clearance in 2017, first CE mark in Europe in 2012, and is currently
licensed for sale in Australia.

Forward-Looking Statements

This announcement contains or may contain forward-looking statements
that are based on management’s beliefs, assumptions and expectations and
on information currently available to management.

All statements that address operating performance, events or
developments that we expect or anticipate will occur in the future are
forward-looking statements. These include, without limitation, the
long-term prospects for the business, including the ability of the new
CEO to lead the Company, the significance of the progress achieved by
the Company in the past few months with regards to cost reduction and
sales effectiveness, the ability to improve the effectiveness of our
sales model, achieve operating cost efficiencies, reduce cash burn and
achieve profitability.

Management believes that these forward-looking statements are reasonable
when made. You should not place undue reliance on forward-looking
statements because they speak only as of the date when made. AirXpanders
may not actually achieve the plans, projections or expectations
disclosed in forward-looking statements. Actual results, developments or
events could differ materially from those disclosed in the
forward-looking statements. For additional information and
considerations regarding the risks faced by AirXpanders that could cause
actual results to differ materially, see its most recent Quarterly
Report on Form 10-Q, as filed with the Securities and Exchange
Commission on May 3, 2018, including under the caption "Risk Factors,"
as well as other periodic reports filed with the SEC from time to time.
AirXpanders disclaims any obligation to update information contained in
any forward-looking statement, except as required by law.